financial challenges

The Most Common Financial Challenges of Alabama Residents

Financial challenges have long plagued those living in Alabama.

The state is the 5th poorest in the United States, with a nearly 17% poverty rate that’s far above the national average. There are 10 counties in Alabama, accounting for 15% of its counties overall, that have 25% poverty rates. 

Let’s look at some of the common financial challenges Alabama residents like you are facing — and one option to help.

Breaking Down Financial Challenges In Alabama

Too Much Debt

A whopping 39% of households in Alabama have at least one bill currently in debt collection. Carrying a debt burden is far just an Alabama problem. About 31% of the entire country has one debt in collection, and overall debt is among the most common challenges people struggle to overcome.

It’s easy to fall into debt if you bring in less than you spend each month, don’t pay your bills on time, or have spending habits that reflect living above your means.

One of the best things you can do to improve your personal finances is to start beefing up savings and setting a timeframe goal of paying off the most pressing bills and working until you are debt-free.

Overall, Alabama households have an average of over $38,000 in debt. Most of that — $23,000 — comes from a hefty mortgage.

Paying Expensive Student Loans

If you took out a student loan at some point in your life that you’re still struggling to pay off, you’re not alone. About 16% of student loan borrowers in Alabama are facing default compared to a national average of 13%.

For those with ongoing financial instability, student loan payments are a lingering issue and rising balances are alarming. Millions of Americans are behind in payments, according to Pew Charitable Trusts. Some are simply not prepared to manage a loan repayment plan or have a lack of understanding of the rules and regulations related to their student loans.

A major financial emergency often means cutting back on other expenses, and commonly that means putting off student loan payments. The average student loan debt for Alabama households is just over $5,300.   

couple has financial challenges budgeting

Charging Too Much on Credit Cards 

Credit cards are a major modern convenience, but they’re also one of the most damaging financial roadblocks. Alabama’s delinquency rate for credit cards is at 6%, above the 4% national average.  

Delinquency is when a credit cardholder falls behind on their monthly payments. One missed payment is not an issue if your credit card provider offers forgiveness for long-time customers.

However, one missed payment can have a ripple effect that leads to repeated missed payments and an increase in already high-interest rates. The average credit card debt is around $5,000.

Paying Medical Bills

For those with or without health insurance, medical care is often outrageously expensive. An emergency room visit for a relatively simple issue can cost hundreds or even thousands of dollars, and some long-term hospital stays come with a minimum $10,000 bill.

It’s no surprise then that paying medical bills is among the most common financial emergencies in Alabama — 21% of households report having medical debt in the collections phase. That’s 5% higher than the average nationwide.

Not Enough in Savings 

Having a savings account is a big part of being financially responsible, but maintaining one is among the most common financial challenges.

A recent study found that 25% of Alabama residents have no money in savings, the country’s fourth-lowest percentage, while 72% say they have less than $1,000 set aside in savings, the country’s 13th lowest rate.

Lack of savings is far from an Alabama-specific problem. Nearly 28% of Americans recently said they have nothing in savings. 

couple happy from getting fast payday loans

An Option for Relief 

Many will face financial challenges throughout their life. If you’re currently coping with a financial emergency, fast payday loans offer a quick and easy option to get back on your best financial feet.

Fast payday loans are designed as short-term loans to address a serious financial problem, such as a hospital bill or last-minute travel expenses when you’re between paychecks. At Alabama Title Loans, Inc., you may qualify in as little as 30 minutes for fast payday loans of up to $500. 

We make it easy. Fill out the short fast payday loans inquiry form on our homepage. Once you submit, a loan representative from the Alabama Title Loans, Inc. location closest to you will give you a quick call to discuss the items required to qualify and walk you through the rest of the process.

Once you are approved, you will receive your cash the same day or the next business day.

Get Started Today 

Financial challenges come and go, but a financial emergency can quickly throw your life out of whack. A payday loan may help. Start on our homepage, give us a call, or visit us today. We’re here to help.

To learn more about handling emergency expenses, read our other financial emergency articles. 

Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.

June Mckaig

June Mckaig writes articles on finance and budgeting, hoping to provide insight amidst the overwhelming crowds of information on the internet. She feels that with all this accessibility comes a lot of false data, and she would like to contribute astute, helpful input that she knows can help others. If you would like to learn more about June's research, read more here.